Agenda - Council Work Session - 10/28/2014

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(1) Would the Council be comfortable with considering the potential financial obligations that may result from the proposed transaction? The proposed land transaction, which results in no land proceeds, will still require a broker commission fee of 5% (estimated between $65,000 to $87,000) . The City has several financial obligations tied to future land proceeds from HRA owned land located within The COR (i.e. significant Sewer and Water Fund loan repayments, potential street maintenance program, etc.). Selling (or trading) this site to St. Katherine Drexel will result in a tax exempt parcel located within The COR in perpetuity. The City has several future financial obligations tied to property tax revenues within The COR (i.e. TIF obligations, improving Bunker Lake Boulevard, etc.). Tax exempt properties do not provide any funding for regular City maintenance and services (however, all City services will be provided to this user). Based on the land -swap proposal before the Council, Staff is concerned the face value of the two properties involved in this transaction may not be equitable; and should therefore be analyzed in greater detail if this negotiation process moves forward. Staff discussed this proposed project with the City's Financial consultant, Ehlers-- attached to this case is a MEMO outlining the potential financial implications of the proposed land transaction. (2) Does the Council believe a need exists for additional land to expand Central Park in the future? Staff does believe that the preponderance of land adjacent to Central Park should be studied for expansion of the community park by some means. At a minimum, 2-acres parallel to the east line of the park should be conveyed to the City (Fee Title or ROW easement) to solve the parking and vehicular traffic problems that presently exist during tournaments and peak periods. The attachment entitled 'Proposed Parkway' illustrates the 2-acres required for this solution as outlined in green. As indicated, the majority of the 33-acres site immediately adjacent to the 45-acre Central Park should be studied for expansion of the community park, and ultimately discussed as part of the City's Comprehensive Plan. In summary, if the present needs of the community require all of the athletic fields and available space at the park, and the population of Ramsey can be expected to increase by nearly 10,000 people over the next twenty (20) years (additional growth above and beyond this planning period), it is logical there will need to be more community park area added. Two aspects are self evident here, the first is that as the community builds out, there is simply less land available or suitable for a community park, and what there may be, increases exponentially in value. The second is there are significant benefits and savings of having one larger park versus two smaller parks serving the same functions. There is a reduced need for redundant infrastructure (E.g. water wells, electric and sanitary services, buildings, playgrounds, park roads and parking etc.). Plus there are savings on maintenance and operations costs over time as well. Additionally, families find it inconvenient or logistically impractical to have children in programs at different parks at the same time - particularly for tournaments and events. This is likewise true of coaches, umpires, and especially the hundreds of volunteers that are required to host practices, games and tournaments in any given season. (3) Would the Council like Staff and St. Katherine Drexel to continue negotiating a potential land transaction in The COR; or should different alternatives be identified and considered? STAFF COMMENTS: It should be noted, St. Katherine Drexel is an asset for the City of Ramsey and the greater community. Their organization is intimately involved with countless initiatives to improve and strengthen the community and region. From an economic development perspective, St. Katherine is proposing a quality facility that would become a focal point/asset for The COR. Additionally, the proposed 500 seat auditorium would drive significant traffic to the COR for worship services and events. Said traffic is beneficial to retail businesses. Regardless of how the Council decides to move forward with this specific proposal, Staff would recommend continuing to work with St. Katherine Drexel to secure permanent solution for their long term needs in our community. Timeframe: